View or download the January 2021 Newsletter to account holders
As the Chair of the Board of CCMBC Legacy Fund, Inc. and CCMBC Investments Ltd. I’m pleased to announce the appointment of Jason Krueger as President/CEO effective November 16, 2020. The search team is grateful for your prayer support in our search process and we believe the Lord has led us to Jason as the right individual to lead us in this important ministry at this time. Jason is a Chartered Financial Analyst and also has a Master of Arts in leadership. He formally was the President of the Canadian Baptist of Western Canada Foundation. Jason resides in Calgary.
Jason writes, “I have a deep appreciation of how Legacy supports the ministry needs of CCMBC, its churches and pastors, to encourage Kingdom growth. I understand the regulatory environment and ministry considerations that led to the creation of the framework that Legacy operates within. The objectives and activities of the organization I recently led were comparable to those of Legacy; we went on a similar journey with our staff, board and denominational leadership. Prayer-filled collaboration is paramount to accomplishing the conference’s missional objectives. Our efforts are for His glory.”
Please join me in welcoming Jason as President/CEO of Legacy/Investments and I invite you to support him in prayer as he begins his ministry in our MB family.
Michael Dick, Chair
CCMBC Legacy Fund, Inc. & CCMBC Investments Ltd. Board of Directors
This article was originally published by the MB Herald.
CCMBC Investments, One Year Later
As you know, on August 30, 2019, CCMBC completed a reorganization of our long-standing deposit program and your accounts now operate under our new company, CCMBC Investments Ltd. We are pleased to say that the transition to CCMBC Investments was a success, and over this past year CCMBC Investments has been operating efficiently and effectively.
COVID-19 and CCMBC Investments
Since March, we have been pleased with the performance of our investments. On the mortgage side, we have found many churches have been able to maintain their giving income. It is important for you to note that even if we have offered a loan payment deferral, deferral is not the same as forgiveness. Interest is still accruing on these loans and offering payment deferrals will not affect your rate of return. In addition, our mortgage loans are secured on title against the physical asset.
Excess funds that are not immediately required for mortgage loans are invested according to our guidelines and as governed by our staff and board. These funds are invested with a focus on capital preservation and have performed in line with how we would expect them to in a time of economic downturn.
Our account holders have seen a steady rate of return and no reduction in principal balance over the last six months.
July 1 Interest Rate Change
Consistent with prior years, and now as outlined in our Offering Memorandum, our rates did not change suddenly during the economic hardships, and your investments continued to earn a rate of 2.90% until the 6-month term ended on June 30. Our rates are always subject to change on January 1 and July 1 of each year. The new rate for July 1, 2020 to Dec 31, 2020 is 1.40%. This is based on the Bank of Canada overnight lending rate, plus 1.15%. We trust you will find this is a reasonably competitive rate for an investment that is not locked in, has no term and no fees.
We would like to thank every one of you for being ministry partners with us. You may not feel like you are actively participating in ministry when you invest your funds with us, but that is precisely what you are doing! Through your investments, we can provide funding to our MB Churches, camps, schools and pastors, often allowing for opportunities that wouldn’t otherwise be possible. We wish we could share every story with you! That is not always possible, but here is a short comment from one of our pastors:
We had the opportunity to serve in a community that has historically been very difficult for an established church to thrive. CCMBC worked to help us achieve our goal of moving into [this community]. This has enabled us to get to know people in a deeper way. Our mission in life is to help people see the hope that is in Jesus. One of the best parts of that is the relationships we form and then getting to learn from those we meet, and all grow together. Lord willing, we look forward to many years of BBQ’s, kids’ camps, and other community building events with our new neighbours.
Thank you for investing to make a difference!
Chief Financial Officer
RRIF MINIMUM WITHDRAWALS REDUCED 25% FOR 2020
On March 18, 2020, the Government of Canada announced portions of its COVID-19 Economic Response Plan, including details of Bill C-13, the COVID-19 Emergency Response Act which included proposed changes to the calculation of the 2020 required minimum withdrawal for registered retirement income funds (RRIFs). Recognizing current market conditions may impact many seniors’ retirement savings, the bill reduces minimum withdrawals from RRIFs for 2020 by 25%.
To help clients understand the impact of these changes on their clients’ RRIFs, CWB Trust Services has prepared the following Frequently Asked Questions:
1. How will the reduced minimum apply for an annuitant that is transferring their RRIF from one institution to another?
The relinquishing institution should pay the minimum unless instructed otherwise by the annuitant. The annuitant can request the minimum payout to be reduced by 25% less than the original calculated amount. For annuitants who do not choose to reduce their minimum payments, the original calculated minimum can still be applied without withholding tax.
2. How will the reduced minimum apply for annuitants with scheduled payments?
Annuitants may request to reduce their remaining schedule of payments to meet the reduced minimum amount.
3. For investors who have already received their full 2020 minimum, can they recontribute the 25% reduction back to their RRIF?
At this time, CRA has indicated that re-contributions of the 25% will not be permitted.
4. Is this reduction mandatory or optional?
The 25% reduction in the annual minimum payment is optional.
5. Are Life Income Fund minimum payments included in this?
Yes, LIFs would follow the same minimum requirements and options.
6. Are these changes effective January 1, 2020 or on a go-forward basis?
This change is applicable for 2020 only and only in those situations where the full minimum amount has not yet been paid to an annuitant.
7. What happens if annuitants have already taken their annual minimum payment prior to March 2020?
This change will not apply to them as they have already received their 2020 minimum required payment.
8. Is the taxable amount on any excess based on the unreduced minimum, or the newly reduced 25% minimum?
Withholding tax will be due on amounts greater than the unreduced minimum amount.
Clients looking for additional clarity on the Act and its impacts on RRIFs are encouraged to visit the Government of Canada’s official page here: https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/registered-retirement-savings-plans-registered-retirement-income-funds-rrsps-rrifs/economic-statement-measure-annuitants-rrsp-rrif.html
To our valued Investors,
As we are all making adjustments to the new realities in our lives due to COVID-19, we want to communicate to you that we will continue to provide services to our investors.
We have had inquiries from investors with questions about how the fall in the equity markets is affecting their investments with CCMBC Investments. We would like to assure you that your investments continue to pay interest and dividends as outlined in the Offering Memorandum (OM). Currently the interest rate on the Notes is 2.9%. This is subject to change on July 1 and January 1 of each year based on the Bank of Canada Overnight Rate at that time. The Preferred Shares dividend rate remains constant at 1%.
Also, as noted in the OM, your investments are used to provide mortgage loans to MB churches, other MB entities, and MB pastors. Any excess funds are invested in a diversified portfolio that is focused on capital preservation. At this time, the portfolio is not exposed to the public equity markets. Currently, approximately 60% of CCMBC Investment Ltd’s assets are held in MB mortgages.
As you could expect, some churches may need to defer payments for a short time as their donations come in at a slower rate. The loans are still earning interest and we expect to collect full payments at a later date.
In an effort to practice social distancing, while balancing service to you with the self-care of our employees, we are providing opportunities for our staff to work from home or alternate days in the office. While we focus on meeting your needs, we ask for your grace and patience as our response times may be longer than you have experienced in the past.
We continue to thank you for your investment in ministry by supporting the work of the churches through the funding of mortgages.
Blessings and peace to you,
Bertha Dyck, Chief Financial Officer
Jim Davidson, Chief Executive Officer